Hedging the Swiss franc: the appreciating currency, and what it changes for importers and exporters
Over five years, the Swiss franc gained nearly 16% against the euro, and its rates are the lowest in Europe. As a result, hedging costs the importer and pays the exporter. What moves EUR/CHF, the lesson of 15 January 2015, what a forward costs and the pitfalls specific to the franc.
For many French companies, Switzerland is a nearby customer or supplier, and the franc one of the most traded currencies: according to the BIS, it became the sixth most traded currency in the world in 2025. For a French company, it has one particular feature: over long periods, it has tended to appreciate against the euro.
Five years of appreciation
For an importer paying a Swiss supplier in francs, this means the same amount in francs costs about 16% more euros than five years ago. For an exporter collecting francs, it is the reverse.
The lesson of 15 January 2015
From 2011 to 2015, the Swiss National Bank defended a floor of 1.20 francs per euro. On 15 January 2015, it abandoned it without warning, cutting its rate to −0.75% at the same time, explaining that the floor could only be held through ever larger interventions. The ECB reference rate went from 1.2010 the day before to 1.0280 that day, −14.4%; according to the SNB, EUR/CHF even fell to 0.85 in the moments that followed.
A rate that seems guaranteed by a central bank is only guaranteed for as long as it decides. Barrier hedges — knocked out or knocked in at a given rate — are particularly exposed to this kind of jump: the rate does not pass through the barrier, it leaps over it.
What moves EUR/CHF
- The policy of the Swiss National Bank, which targets price stability and can intervene in the FX market.
- The rate gap with the euro area: Swiss rates are persistently the lowest in Europe.
- Periods of stress, during which the franc is in demand.
What a forward costs today
With franc rates below euro rates, the EUR/CHF forward trades below spot. This is the case where hedging pays the exporter.
| As of 16 October 2026 | Value |
|---|---|
| Gap between one-year forward and spot, EUR/CHF | −2.86% (0.9260 spot, 0.8996 one year) |
| Exporter: EUR 1,000,000 receivable in CHF, hedged one year ahead | about EUR 1,029,400, i.e. 2.9% more than at spot |
| Who the forward favours | The exporter selling francs forward; the importer pays the gap |
For an importer buying francs forward, the forward premium costs about 2.9% a year at current rates. It is the price of protection against further franc appreciation — which, over the last five years, was far larger.
Pitfalls specific to the franc
- 1Hedging only when the franc rises
Franc appreciation comes in bursts. Waiting until it has already risen to hedge means hedging at the worst moment.
- 2Barriers near round levels
Barrier structures on EUR/CHF are exposed to rate jumps. Their risk is read in the document, not in the guaranteed rate.
- 3Leaving the forward cost out of the budget
For an importer, the forward adds about 2.9% a year: a budget rate that ignores it is wrong from the start.
Sources
- European Central Bank, euro reference exchange rates (EXR series), from 15 October 2021 to 16 October 2026; extremes calculated by ELEGG.
- Swiss National Bank, "Swiss National Bank discontinues minimum exchange rate and lowers interest rate to −0.75%", press release, 15 January 2015; speech of 24 April 2015 on monetary policy after the end of the minimum exchange rate.
- European Central Bank, EUR/CHF reference rates from 13 to 16 January 2015 (EXR series).
- Bank for International Settlements, 2025 Triennial Survey: "Global FX trading hits $9.6 trillion per day in April 2025", press release, 30 September 2025.
- Forward points and spot rates captured by ELEGG Finance on 16 October 2026 at 22:17 UTC (source: NetDania), mid rates between bid and offer; ELEGG calculation.
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Frequently asked questions
The questions finance departments ask most often on this topic
How much does a Swiss franc forward hedge cost?
On 16 October 2026, the one-year EUR/CHF forward traded about 2.86% below spot, because Swiss rates are lower. An importer buying francs forward therefore pays about 2.9% more than at spot; an exporter selling francs receives about 2.9% more euros.
What happened on 15 January 2015 to the Swiss franc?
The Swiss National Bank abandoned without warning the floor of 1.20 francs per euro it had defended since 2011. The ECB reference rate went from 1.2010 to 1.0280 in one day, and the rate touched 0.85 in the moments that followed according to the SNB.
Has the Swiss franc appreciated against the euro?
Yes: according to ECB reference rates, EUR/CHF went from 1.0729 on 15 October 2021 to 0.9272 on 16 October 2026, a franc appreciation of about 16% over five years.
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